Cash Out Trading Blog Post

Back to other blog posts

How much do I need in a trading bank?

How much do I need in a trading bank?

Trading Banks

I often get asked about how much people need for a trading bank.

Generally, most people who come into trading do so after cutting their teeth (or losing their bank) on backing horses.

Because of that, they are used to considering how much bank they will need to cover the inevitable losing streak when following a system or tips.

This represents one of the first shifts in your mindset when you decided to start trading…

…We do not want to lose our whole stake.

In fact, we don’t want to lose more than 10 or 20% if we can help it.

So, on a £10.00 stake, we wouldn’t expect to lose any more than £1 or £2 if things went against us.

Small Trade

The second thing that makes trading different is as soon as you have made a trade then your stake becomes available for use again.

This means, in theory, you can trade the same £10 on event after event as long as you have closed the trade.

When traders boast about how much they have traded, often this can just mean they have continually reused the same amount they have just traded it a number of times.

If you trade with £500 ten times in a day then you could easily say you traded £5000 in the markets.

The beauty of trading is that you can start with a bank of as little as £10 (probably less if you had to) and just build it up.

£10 would give you 5 x £2 trades but it is unlikely you would have 5 on the go at any one time.

A few small Trades

With trading, we want as much money as we can to trade with rather than to cover losses …

…What we really want to do is capitalise on what we can afford to stake.

Don’t get me wrong you don’t want to risk your whole capital or one trade but you also don’t want to be so risk-averse that you use a stake well under what you could really afford.

Personally, I found it very difficult to think this way when I first started out and kept thinking that I needed my bank in case things went wrong.

The turning point came when I decided I would not take chances with my stake and get out if I felt a trade had gone too far against me or that I had made a mistake.

(I do have some in-play strategies from the Trade Targeting Software and the Dob Software).

Also, when you first start out it takes time to get used to making small increments on your stakes…

…It’s only when you realise that you are really making money from trading and the profits from each trade are adding up that you then start thinking how you can maximise the money you have to trade with.

Be cautious though because you have to learn what works and what doesn’t, and this can only be done with experience (Or purchasing BCOTM).

It goes without saying there are still risks involved with trading and things can happen but the longer you trade the more you understand where those risks are and adjust your stakes accordingly.

Until Next Time


The "Cash Out" guy.

Cash Out Trading Method

Cash Out Trading Method

Trade Targeting Software

Cash Out Trading Method

Dob Software

Please Gamble Responsibly
Bluebell Data. Registered office: 29 bath road, Swindon, Wilts.SN1 4AS